Zema counters Haddad on debt renegotiation: “Example has to come from above”

The governor of Minas Gerais, Romeu Zema (New)responded to criticism from the Minister of Finance, Fernando Haddad (PT), stating that the president’s vetoes Luiz Inácio Lula da Silva (PT) to the State Debt Full Payment Program (Propag) directly harm miners.

In statements made on social media, Zema refuted Haddad’s accusation that the governor was not transparent in the program’s negotiations.

According to the governor, Minas Gerais, for the fourth consecutive year, closed its fiscal deficit and has already paid more than R$8 billion to the Union.

“Minister, I understand and respect your work to try to get Brazil out of fiscal control. But the example has to come from above, with cuts in the flesh itself. There can be no boycott within the government team”, stated Zema on X (formerly Twitter).

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The statement was made by the state secretary of Finance of Rio Grande do Sul, Pricilla Santana. Just as governor Eduardo Leite (PSDB) had already done, she criticized the terms of the agreement and Lula’s vetoes

According to Zema, the “mutilation” of the approved text imposes additional costs on the state, while the federal government “maintains 39 ministries, promotes luxurious trips and applies 100 years of secrecy to the president’s card”.

Earlier, Haddad had criticized Zema for sanctioning an increase of almost 300% in his own salary, even during the Tax Recovery Regime.

He also stated that the initial proposal presented by the governor of Minas to renegotiate the debt was inferior to the final text sanctioned by Lula.

Zema suggested that Minas Gerais should not join Propag if the vetoes are not overturned by Congress. Despite this, vice-governor Mateus Simões (Novo) guaranteed that accession will take place, but only in 2026.

The program, sanctioned by Lula, offers conditions such as interest reduction and payment of state debts in up to 30 years. In return, it requires states to allocate resources to priority areas such as health and education.

Opposition governors, including Zema, have criticized the measure, saying that the vetoes limit the expected benefits.

The debts accumulated by Brazilian states exceed R$800 billion. Faced with criticism from the governors, President Lula even called them “ungrateful”, reinforcing that the debts need to be paid.